Ashok Lahiri Makes Key Remarks on UPI Charges

NITI Aayog Vice Chairman Ashok Kumar Lahiri has defended the introduction of a Merchant Discount Rate (MDR) on select high-value UPI transactions, saying digital payment services cannot remain dependent on government subsidies indefinitely. He said a charge of 40 paise on a ₹100 transaction would not be a significant burden and argued that businesses need to find ways to become financially self-sustaining. Lahiri clarified that the remarks reflected his personal view and were not the official position of NITI Aayog.

Lahiri invoked the teachings of Chanakya while explaining the need for a sustainable revenue model, comparing the approach to collecting honey from a flower without causing damage to it. Under the revised framework, a 0.4% MDR will apply from October 15 to eligible person-to-merchant UPI transactions above ₹2,000, with the charge capped at ₹300 for transactions of ₹75,000 or more. Person-to-person UPI transfers will continue to remain free.